Monroe Co. purchased equipment on January 1, 2018, for $80,000. The equipment has an estimated useful...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Monroe Co. purchased equipment on January 1, 2018, for $80,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $15,000. Also, the equipment is expected to provide 50,000 units over its lifetime. Required: (1) Prepare a table showing depreciation expense and book value of the equipment for the first three years under each of the following methods: a. Straight-line method b. 200% declining balance method Units of output method – actual units produced each year were as follows: 2018 8,000 с. 2019 6,400 2020 4,800 (2) Now assume that at the end of 2020, Monroe Co. decided to sell the equipment. Prepare a journal entry to show the sale if the company received $46,000 for the sale of the equipment. Monroe Co. purchased equipment on January 1, 2018, for $80,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $15,000. Also, the equipment is expected to provide 50,000 units over its lifetime. Required: (1) Prepare a table showing depreciation expense and book value of the equipment for the first three years under each of the following methods: a. Straight-line method b. 200% declining balance method Units of output method – actual units produced each year were as follows: 2018 8,000 с. 2019 6,400 2020 4,800 (2) Now assume that at the end of 2020, Monroe Co. decided to sell the equipment. Prepare a journal entry to show the sale if the company received $46,000 for the sale of the equipment.
Expert Answer:
Answer rating: 100% (QA)
cost Salvage Dep exp Book value 73500 SLM 80000 15000 6500 Cash 46000 6500 67000 Accumulate... View the full answer
Posted Date:
Students also viewed these accounting questions
-
An intangible asset with an estimated useful life of 30 years was acquired on January 1, 2002, for $540,000. On January 1, 2012, a review was made of intangible assets and their expected service...
-
An intangible asset with an estimated useful life of 30 years was acquired on January 1, 2009, for $540,000. On January 1, 2019, a review was made of intangible assets and their expected service...
-
A machine originally had an estimated useful life of 11 years, but after 4 complete years, it was decided that the original estimate of useful life should have been 16 years. At that point the...
-
Does the fact that the strategic petroleum reserve has never been used to offset shortfalls caused by an embargo mean that the money spent in creating the reserve has been wasted? Why or why not?
-
Ralph dies without having made a will. He is survived by many relativesa spouse, children, adopted children, sisters, brothers, uncles, aunts, cousins, nephews, and nieces. What determines who gets...
-
A tabular analysis of the transactions made during August 2014 by Colaw Company during its first month of operations is shown below. Each increase and decrease in stock- holders equity is explained....
-
Use discounted-cash-flow (DCF) models for decision making.
-
Compute current E & P for Sparrow Corporation (a calendar year, accrual basis taxpayer). Sparrow reported the following transactions during 2014, its second year of operation. Taxable income...
-
x fx B C D Mandy and Moe Inc. has a capital and its beta (leveraged) is 1.18. Bas be if it used no debt, i.e., what is it
-
The names of the employees of Matson Office Systems and their regular salaries are shown in the following payroll register. Note that Wayne and Young are paid monthly on the last payday, while all...
-
A new day sheet is: completed on an annual basis started every day for transactions made that day. not necessary when performing bookkeeping tasks. started only when the previous day sheet is filled...
-
Information concerning Valnet Corporation's intangible assets is as follows: a. On January 1, 2019, Valnet signed an agreement to operate as a franchisee of Rapid Copy Service Inc. for an initial...
-
17. A concave mirror produces a real image 10mm tall, of an object 2.5mm tall placed at 5cm from the mirror. Calculate focal length of the mirror and the position of the image. 18. An object is...
-
Martine finds herself in debt after losing her job and exhausting her emergency fund. She has begun an new career and she wants to get her debt under control. She owns a condo and it is currently...
-
Create a context level DFD for Pine Valley Furniture. Create a Level 0 DFD for Pine Valley Furniture.
-
4 Consider the polynomial 5xyz - 7x2yz2 + 4xyz. What type of polynomial is this?
-
In which of the following situations would a company use target costing? O When the product is not easily differentiated from competing products When there are few or no other producers capable of...
-
Pearson Education, a publisher of college textbooks, would like to know if students prefer traditional textbooks or digital textbooks. A random sample of students was asked their preference and the...
-
1. Several successful chains of warehouse stores such as Costco have merchandising policies that differ considerably from those of traditional department stores. Identify characteristics of these...
-
The Ibunez Tool Company has two products: a plain circular saw and a fancy circular saw. The plain circular saw sells for $66 and has a variable cost of $50. The fancy circular saw sells for $100 and...
-
The following is the income statement of a manufacturer of blue jeans: Hunter had manufactured 2 million units, which had been sold to various clothing wholesalers and department stores. In early...
Study smarter with the SolutionInn App